If a person dies in Minnesota owning assets valued at more than $50,000, in their own name with no beneficiary designation, a probate proceeding will be required to properly distribute these assets to the beneficiaries. If there is a Will, the assets will be distributed according to the terms of the Will. If there is no Will, the assets will be distributed according to the intestacy statutes of Minnesota. In either case, a probate proceeding will be necessary.
However, the expense of a probate proceeding can be avoided with a little planning. For example, if a bank account is changed from a sole account to a joint account, the asset will pass to the other joint account owner upon death of either of the owners, without need for a probate proceeding. Real estate can be held as joint tenants with right of survivorship, which will provide that upon death of one joint tenant the property is owned by the surviving joint tenant. The surviving joint tenant simply files an Affidavit of Survivorship with the county recorder of the county where the property is located. Before choosing these non-probate transfers, the individual should be certain that titling these assets in this way reflect their wishes.
Monday, January 16, 2012
Estate Planning- What is it, and Who needs it?
What is it? Estate planning is the process of preparing and executing documents which will transfer your assets at your death to the individuals and organizations you wish to receive them. The process often includes preparing Powers of Attorney, Health Care Directives, and Deeds to real property.
Powers of Attorney: Authorizes another individual (or more than one) to execute financial documents on your behalf.
Health Care Directives: Authorizes another individual (or more than one) to make medical decisions on your behalf, and outlines your wishes regarding what you consider appropriate health care.
Deeds: Transfers real estate according to your wishes. Although these deeds are signed and notarized at the present time, they may not be recorded until after your death or disability.
If you own assets in your sole name, with no beneficiary designation, you will also need a Will, or Revocable Trust to properly transfer those assets according to your wishes. In Minnesota, if you do not have a Will or Revocable Trust, this property will be distributed according to the Minnesota laws of intestacy. This may or may not be how you wish to have your property distributed. If you have minor children, a Will appoints guardians for these minor children in the event both parents pass away while the children are minors.
Who needs it? Anyone who wishes to provide that financial issues, real estate issues, and health care issues are properly handled, regardless of what the future holds- to the greatest extent possible!
Powers of Attorney: Authorizes another individual (or more than one) to execute financial documents on your behalf.
Health Care Directives: Authorizes another individual (or more than one) to make medical decisions on your behalf, and outlines your wishes regarding what you consider appropriate health care.
Deeds: Transfers real estate according to your wishes. Although these deeds are signed and notarized at the present time, they may not be recorded until after your death or disability.
If you own assets in your sole name, with no beneficiary designation, you will also need a Will, or Revocable Trust to properly transfer those assets according to your wishes. In Minnesota, if you do not have a Will or Revocable Trust, this property will be distributed according to the Minnesota laws of intestacy. This may or may not be how you wish to have your property distributed. If you have minor children, a Will appoints guardians for these minor children in the event both parents pass away while the children are minors.
Who needs it? Anyone who wishes to provide that financial issues, real estate issues, and health care issues are properly handled, regardless of what the future holds- to the greatest extent possible!
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